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REGISTERED NUMBER: 07267159 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MOMENTUM BROKER SOLUTIONS LTD

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


MOMENTUM BROKER SOLUTIONS LTD

COMPANY INFORMATION
for the year ended 31 December 2023







DIRECTORS: H W Pepper
J T Wilkinson
H L Westwood
A D Body
M P Brunton



SECRETARY: H L Westwood



REGISTERED OFFICE: Press House
Narborough Wood Park
Desford Road
Enderby
Leicestershire
LE19 4XT



REGISTERED NUMBER: 07267159 (England and Wales)



AUDITORS: Magma Audit LLP
Chartered Accountants
Statutory Auditor
Magma House, 16 Davy Court
Castle Mound Way
Rugby
CV23 0UZ



BANKERS: Lloyds Bank Plc
12-16 Lower Parliament Street
Nottingham
NG1 3DA

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

STRATEGIC REPORT
for the year ended 31 December 2023


The directors present their strategic report for the year ended 31 December 2023.

The principal activity of the company continued to be that of insurance intermediary.

REVIEW OF BUSINESS
This is our 13th year of consecutive growth, however 2023 has been exceptional. Our AR partners have achieved impressive levels of growth and we have attracted a record number of new partners. As a result, our top and bottom-line performance have exceeded expectations. Our emphasis on quality has been repaid in the attraction of the best of new startups and by the performance of existing businesses. The business model which aligns our success to the success of our partners is a key factor in the business performance.

We have an ongoing recruitment plan and are delighted to have welcomed 25 new colleagues during the year. We have also expanded our apprenticeship program, developing talent to meet the needs of the business now and in the future. We continue to invest in all areas of the business and key hires include a dedicated Quality and Compliance Director. Ensuring that we meet the highest standards of governance remains essential for the benefit of all our trading partners. We have also expanded our marketing team to support the promotion of both Momentum and our partners. Further investment has been made in the systems that support our business and our trading partners to ensure process efficiency and effective business support.

Highlights of the year include:

- Placing in excess of £81m GWP, growth of 30%
- 32% revenue and 53% profit growth
- Attracting 20 new AR's- 14 start ups and 6 existing AR's
- Supporting 100 AR's across the UK
- Recruiting 25 new colleagues and implemented new apprentice programme
- Making a number of key hires including Senior Broking Manager & Quality and Compliance Director
- Building on previous years success and delivered a highly commended 2nd annual conference

As a result, the company has achieved turnover for the year ended 31 December 2023 of £15,228,734 (2022: £11,685,916) and achieved profit before tax of £1,701,193 (2022: £1,113,742 ). As at 31 December 2023 the company had net current assets of £3,213,863 (2022: £2,187,070) and net assets of £3,483,872 (2022: £2,374,427).

Key Performance Indicators
Our strong financial position has enabled us to provide support to our AR partners in developing their businesses and managing their eventual exit. Our key financial performance indicators for the year ended 31 December 2023 are as follows: -

2023 2022 2021
Revenue £15,228,734 £11,685,916 £9,987,674
Net revenue £6,121,653 £4,479,100 £3,808,636
Payroll costs £3,161,821 £2,481,205 £2,145,010
Operating profit £1,801,190 £1,113,742 £778,959
Net assets £3,488,581 £2,365,015 £1,597,342
Employee numbers 83 66 64


MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

STRATEGIC REPORT
for the year ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Strategic
We have gained market leadership in our sector however the success of the model has led to increasing competition and investment. During the year the longest established AR business in our market was taken over by a substantial US brokerage and we are likely to see this trend continue. Whilst the expanding marketplace creates opportunities, we remain vigilant of the need to continually develop the business model to retain our position.

Financial
We have built a strong financial position which has enabled us to invest in our and our appointed representative's businesses. We are increasingly identifying opportunities to provide funds to our (AR) partners to support their growth and assist in their long-term exit plans. This enables us retain business within Momentum and provide an added benefit to join our network. Exit funding will be an increasing feature as the older demographic amongst our membership consider their retirement plans.

Cash management remains a strength and we have benefitted from increased interest rates as well as minimising our exposure to bad debts.

Operational
We undertake a substantial number of transactions and operational efficiency is critical to our business performance. Operating alongside a market leading software supplier we undertake a program of continuous improvement. This benefits all our trading partners and enables us to scale up the business to meet our growth plans. Alongside this the provision of high-quality management information enable us to mitigate risk and provide valuable insight for us and our partners.

Our increased scale has enabled us to further enhance our relationship with our insurer partners. This enables us to provide superior propositions to our partners for the benefit of their clients.

Governance
Governance remains at the heart of our business model and we have built on our existing capability by recruiting a highly experienced Quality and Compliance Director to lead our governance function. The AR model continues to attract the scrutiny of the regulator and our adherence to the highest standards sets us apart from others in our sector.

ON BEHALF OF THE BOARD:





H W Pepper - Director


19 March 2024

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

REPORT OF THE DIRECTORS
for the year ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of insurance intermediary.

DIVIDENDS
Interim dividends of £179,485 (2022: £124,898) were paid during the year. The directors do not recommend payment of a final dividend.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

H W Pepper
J T Wilkinson
H L Westwood
A D Body
M P Brunton

FINANCIAL INSTRUMENTS
The principal financial instruments of the company comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance its continuing operations. Liquidity risk is managed by the use of bank balances along with efficient monitoring and forecasting of cash flow to ensure there are sufficient funds to meet liabilities. Trade debtors are managed in respect of credit and cash flow risk by policies monitoring the credit offered to customers, and regular monitoring of amounts outstanding for both time and credit limits.

POLITICAL DONATIONS AND EXPENDITURE
The company has not made any political donations during the current or preceding year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

REPORT OF THE DIRECTORS
for the year ended 31 December 2023


AUDITORS
The auditors, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





H W Pepper - Director


19 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MOMENTUM BROKER SOLUTIONS LTD


Opinion
We have audited the financial statements of Momentum Broker Solutions Ltd (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MOMENTUM BROKER SOLUTIONS LTD


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and the industry, we have identified that the principal risks of non-compliance with laws and regulations related to UK Tax legislation and with the Financial Conduct Authority, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:

- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and
regulations and fraud.
- Challenging assumptions made by management in their accounting estimates, in particular in relation to volume
bonus provisions and recoverability of the director's current account.
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations,
journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined
descriptions.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting in error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Victoria Craig (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP
Chartered Accountants
Statutory Auditor
Magma House, 16 Davy Court
Castle Mound Way
Rugby
CV23 0UZ

19 March 2024

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 15,228,734 11,685,916

Cost of sales (9,310,040 ) (7,206,816 )
GROSS PROFIT 5,918,694 4,479,100

Administrative expenses (4,320,460 ) (3,420,810 )
1,598,234 1,058,290

Other operating income 47,046 42,045
OPERATING PROFIT 5 1,645,280 1,100,335

Interest receivable and similar income 155,913 13,407
PROFIT BEFORE TAXATION 1,801,193 1,113,742

Tax on profit 6 (435,161 ) (216,319 )
PROFIT FOR THE FINANCIAL YEAR 1,366,032 897,423

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,366,032

897,423

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 8 74,677 77,025
Investments 9 255,000 170,000
329,677 247,025

CURRENT ASSETS
Debtors 10 1,794,738 762,277
Investments 11 344,104 572,351
Cash at bank and in hand 8,079,740 6,552,179
10,218,582 7,886,807
CREDITORS
Amounts falling due within one year 12 (6,927,617 ) (5,699,737 )
NET CURRENT ASSETS 3,290,965 2,187,070
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,620,642

2,434,095

PROVISIONS FOR LIABILITIES 14 (59,668 ) (59,668 )
NET ASSETS 3,560,974 2,374,427

CAPITAL AND RESERVES
Called up share capital 15 990 990
Capital redemption reserve 16 1,365 1,365
Retained earnings 16 3,558,619 2,372,072
SHAREHOLDERS' FUNDS 3,560,974 2,374,427

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2024 and were signed on its behalf by:





H L Westwood - Director


MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 990 1,599,547 1,365 1,601,902

Changes in equity
Dividends - (124,898 ) - (124,898 )
Total comprehensive income - 897,423 - 897,423
Balance at 31 December 2022 990 2,372,072 1,365 2,374,427

Changes in equity
Dividends - (179,485 ) - (179,485 )
Total comprehensive income - 1,366,032 - 1,366,032
Balance at 31 December 2023 990 3,558,619 1,365 3,560,974

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

CASH FLOW STATEMENT
for the year ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,368,362 1,831,670
Tax paid (219,555 ) (148,997 )
Net cash from operating activities 2,148,807 1,682,673

Cash flows from investing activities
Purchase of tangible fixed assets (40,921 ) (16,973 )
Purchase of fixed asset investments (85,000 ) (170,000 )
Movement in current asset investment 228,247 (572,351 )
Interest received 155,913 13,407
Net cash from investing activities 258,239 (745,917 )

Cash flows from financing activities
Amount introduced by directors - 15,970
Amount withdrawn by directors (700,000 ) -
Equity dividends paid (179,485 ) (124,898 )
Net cash from financing activities (879,485 ) (108,928 )

Increase in cash and cash equivalents 1,527,561 827,828
Cash and cash equivalents at beginning
of year

2

6,552,179

5,724,351

Cash and cash equivalents at end of year 2 8,079,740 6,552,179

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,801,193 1,113,742
Depreciation charges 43,269 36,913
Finance income (155,913 ) (13,407 )
1,688,549 1,137,248
Increase in trade and other debtors (332,461 ) (59,517 )
Increase in trade and other creditors 1,012,274 753,939
Cash generated from operations 2,368,362 1,831,670

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 8,079,740 6,552,179
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 6,552,179 5,724,351


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 6,552,179 1,527,561 8,079,740
6,552,179 1,527,561 8,079,740

Liquid resources
Current asset investments 572,351 (228,247 ) 344,104
572,351 (228,247 ) 344,104
Total 7,124,530 1,299,314 8,423,844

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023


1. STATUTORY INFORMATION

Momentum Broker Solutions Ltd is a limited company, registered in England and Wales. The company's registered number and office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company's functional currency and presentational currency is Sterling (£). The financial statements have been rounded to the nearest £1.

Significant judgements and estimates
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Commission receivable
Turnover from commissions receivable is recognised at the point of inception of the contract when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of the insurance contract to the insurer;
- the amount of commission can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Other income including administrative fees and volume overriders is only recognised as turnover when the right to consideration is achieved and is capable of reliable measurement.

Other operating income
Other operating income relates to contributions from the Company's Authorised Representatives in respect of professional indemnity insurance and is recognised at the point of receipt.

Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Cost represents the purchase price together with any incidental costs of acquisition.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over the estimated useful life.

Leasehold improvements-Over the life of the lease
Computer equipment-33.33% per annum on cost
Fixtures and fittings-20% per annum on cost and 10% per annum on cost
Motor vehicles-20% per annum on cost

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective
evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying
amount and the present value of the estimated cash flows discounted at the asset’s original effective interest
rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods that have been acquired in the ordinary course of business from suppliers.

Trade creditors are classified as current liabilities if payment is due within one year or less.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Provisions for liabilities
Provisions for liabilities and charges are charged against profits. Provisions comprise the expected cost of professional indemnity insurance excess costs and are based the director's best estimate of potential future claims.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Taxation
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is
recognised in the profit and loss account, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.
(i) Current tax
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

(ii) Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions.
Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be
recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the
period end and that are expected to apply to the reversal of the timing difference.

Foreign currencies
At each year end foreign currency monetary items are translated using the closing exchange rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Operating leases
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Insurance broking
As an insurance broker, the company acts as an agent in placing the insurable risks of their clients with insurers but is not liable as Principals for amounts arising from such transactions. The third party cash balances held in respect of these insurance broking transactions, due to both the underwriters and the insurance brokers, have been shown as assets and liabilities within the accounts as they provide the company with access to future economic benefits as defined within the financial reporting standards and UK GAAP. It is normal practice for insurance brokers to settle accounts with other intermediaries, client and insurers on a net basis. The company acts as an agent of insurance companies in broking and administering insurance products and is liable as a principal for premiums due to those underwriters. The company has followed generally accepted accounting practice for insurance brokers by showing cash balances relating to insurance business as assets and liabilities of the company itself. Revenue is recognised on such agency arrangements.

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary
shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Investments
Fixed asset investment and current asset investments are stated at cost less provision for diminution in value.

Fixed asset investments consist of bank balances that are due to mature in over 12 months at the point the deposits are made.

Current asset investments consist of bank balances that are due to mature in over 3 months but less than 12 months.

3. TURNOVER

The total turnover of the company for the period has been derived from its principal activity wholly undertaken in the United Kingdom.

4. EMPLOYEES AND DIRECTORS

20232022
££
Wages and salaries2,783,8302,162,829
Social security costs256,204218,717
Other pension costs121,78599,659
3,161,8192,481,205

The average number of employees during the year was as follows:
20232022

Broking4843
Directors55
Other2318
7666

2023 2022
£    £   
Directors' remuneration 441,476 400,100
Directors' pension contributions to money purchase schemes 16,932 15,332

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 122,250 113,500
Pension contributions to money purchase schemes 5,676 5,440

Key management personnel compensation
The directors deem the key management of the company to include directors only.

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Other operating leases 114,976 111,011
Depreciation - owned assets 43,269 36,913
Auditors' remuneration 15,886 13,596
Taxation compliance services 1,440 1,080

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 435,161 219,555

Deferred tax - (3,236 )
Tax on profit 435,161 216,319

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,801,193 1,113,742
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

423,641

211,611

Effects of:
Expenses not deductible for tax purposes 11,520 5,461
Depreciation in excess of capital allowances - 2,483
Deferred tax movement - (3,236 )
Total tax charge 435,161 216,319

7. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 179,485 124,898

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


8. TANGIBLE FIXED ASSETS
Fixtures
Leasehold and Motor Computer
improvements fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 33,321 42,951 31,593 177,400 285,265
Additions - 4,168 - 36,753 40,921
At 31 December 2023 33,321 47,119 31,593 214,153 326,186
DEPRECIATION
At 1 January 2023 19,992 29,110 10,496 148,642 208,240
Charge for year 6,664 3,191 6,319 27,095 43,269
At 31 December 2023 26,656 32,301 16,815 175,737 251,509
NET BOOK VALUE
At 31 December 2023 6,665 14,818 14,778 38,416 74,677
At 31 December 2022 13,329 13,841 21,097 28,758 77,025

9. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023 170,000
Additions 85,000
At 31 December 2023 255,000
NET BOOK VALUE
At 31 December 2023 255,000
At 31 December 2022 170,000

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other debtors 105,311 61,908
Directors' current accounts 700,000 -
Tax 5,156 5,156
Prepayments 984,271 695,213
1,794,738 762,277

11. CURRENT ASSET INVESTMENTS
2023 2022
£    £   
Unlisted investments 344,104 572,351

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 6,273,706 5,344,119
Tax 435,161 219,555
Social security and other taxes 143,203 79,462
Other creditors 25,267 17,545
Accrued expenses 50,280 39,056
6,927,617 5,699,737

Unpaid pension contributions included within other creditors amount to £24,005 (2022: £17,545).

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 114,619 9,588
Between one and five years 67,648 2,338
182,267 11,926

14. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 9,668 9,668
Professional Indemnity
Insurance excess 50,000 50,000
59,668 59,668

Deferred Insurance
tax Excess
£    £   
Balance at 1 January 2023 9,668 50,000
Balance at 31 December 2023 9,668 50,000

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
990 Ordinary £1 990 990

16. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 2,372,072 1,365 2,373,437
Profit for the year 1,366,032 - 1,366,032
Dividends (179,485 ) - (179,485 )
At 31 December 2023 3,558,619 1,365 3,559,984

MOMENTUM BROKER SOLUTIONS LTD (REGISTERED NUMBER: 07267159)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023


17. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
H L Westwood
Balance outstanding at start of year - 15,970
Amounts advanced 700,000 -
Amounts repaid - (15,970 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 700,000 -

The directors loan account is interest free and is expected to be repaid within 12 months of the advance.

18. RELATED PARTY DISCLOSURES

During the year the company provided insurance totalling £nil (2022: £762,800) to a company with a common director. This resulted in commission totalling £nil (2022: £32,281). At the year end, a balance of £nil (2022: £nil) was due from the related party.

19. CASH AT BANK AND IN HAND

The Company is regulated by the FCA. As required by the FCA, client monies are held in non-statutory trust client bank accounts. The use and governance of the balances held within these accounts are determined by the trust deed and by the FCA's client asset rules source book (CASS). At the year end the amounts held in non-statutory trust client bank accounts was £6,500,151 (2022: £5,360,574).